I’m sort of interested to see at what point Paypal completely shuts down “Friends and Family” payments.
Thus far, that seems to be one of the few ways of getting around fees and perhaps tax liability. I see it constantly used and stated as a request from folks still on non ebay selling platforms-FB primarily.
Im just going to sell old mercari and eBay accounts and passwords that never required a social security # to sell. Be a whole new income.
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They won’t. What comes back to haunt people is when they’re audited. The IRS will see such deposits made and you better have some concrete proof it was in fact a friend sending you $20 or whatever… not for goods and services.
This is the very reason I mentioned in the High Republic thread about those CBSI guys asking people to send as friends and family. How stupid do you have to be to publicly ask for people to not talk about it to save a buck? Don’t they know even such chatter over non secure messaging is auditable? The tax man will have his day when they’re audited and I can only see it not being worth it for such people who try to skim their way out of of a few fees and trying to avoid the taxes on the income…
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@Jiber based on the article, it sounds like this will go into effect on January 1, 2022. So anyone who files in 2023 will have to report any gains.
That’s how I’m understanding it at least.
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@TheTinHat Thats how I read it as well but wanted to see if I was completely off base.
Thank You 
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The only time I use it is to pay for or Collect payment for non profit items. If I want to make a profit I’ll go to eBay.
Honestly until I came across comics heating up I was never seriously in the spec game.
So, it’s all your fault I’m in this mess, CHU!!
I kid, of course.
It’s been a fun ride. 2021 is my swan song, so it seems.
Fire sale at D-Rog’s at the year. And whatever doesn’t sell goes up in flames in early 2022 so I can claim losses…
Again, I kid…
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I know this has been touched on above, but depending on how you’re allowed to file losses, this could be a good thing. If you can count all comic purchases as inventory, that could actually drop your taxable overall income. But, if you never have any intent to sell some of those, I can’t imagine you can claim them.
Time for a call to the tax guy.
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I think under audit, you would have to prove you purchased during the year you are claiming them. I don’t think you can go back and claim a purchase in 2010 now, but yes, seek a tax professional in this case.
But yes, if you buy more than you sell each year and you do plan on selling them all one day, start tracking as inventory bought with the intent to sell…
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Amazon: Profits in the BILLIONS of dollars, but pays $0 federal income tax.
Google: Ditto
Apple: Dodges taxes like no ones business
YOU?: Taxed on anything over $600.
Machiavelli would be proud.
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It’s more complicated than that in why they don’t pay taxes but yes, if you make billions while also losing billions (or donating a huge chunk of cash) in the process, you too can have a small tax bill… 
I wish we’d do away with all the loopholes, setup the flat tax and you pay based on your income. Makes it fair all around. The more you make, the more you pay. So if you don’t like paying more taxes, don’t make so much money…
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Mark Cuban said it best as well. Setup a luxury tax for the rich. If someone like him can afford a 20 million dollar plane to fly around in, he can likely pay a 50% tax on the plane purchase as well. This is still flawed but a nice start. Might just see more rich people not buying luxurious items…
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You are welcome
Say you have a collection of 5,000 comics. and you sell 200 comics a year. Just subtract 200 from your collection each year to offset sales, and you’ll have $0 profit to pay taxes on. Does that sound right? Lol
Yeah, sadly doesn’t work that way…
Once you put those 5000 comics on your “inventory” for say, year 2020… you can’t add those again next year. You can only add what new comics you purchased.
So if you bought 5k comics and never bought a new one again, you would just report your sales each year from your inventory.
But what you stated is a really good way of getting audited…
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Well what I mean is, you have 5000 comics to pull from as “new purchases” for each year, to offset sales for that year. For most of us, we’ll likely be able to use 2021 purchases to offset 2021 sales but for some, they’ll need some extra books to ‘buy’ to ensure a zero sum.
Especially if you have an LLC, which is of course free to purchase comics out of that 5000 comic collection. As long as you’re not double dipping, I don’t see the problem. If the Gov’t won’t let you use old comics as an expense, then make them newly purchased by your LLC and they should be fair game.
*Disclaimer: I’m the furthest thing from a tax pro
That is something one should look into. I guess you could say the LLC bought the comics at $5 each and you’re theoretically paying yourself again.
The swap meet will be the place to buy comics again like before the internet. 
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Nope. Doesn’t work that way at all. First of all there is a difference between a collection and inventory.
When your LLC buys your collection, doesn’t it become inventory? Even if you don’t have an LLC, if the Gov’t is taxing you on your hobby, then you should be able to consider your collection as inventory but having an LLC should make it easier. Gov’t can’t have it both ways… or can they?